Caledonian MacBrayne have been awarded a new £900million contract to continue operating west coast ferry routes.
The Scottish Government announced the publicly-funded operator will continue to serve the Clyde and Hebridean islands for the next eight years.
The contract was awarded after a tendering process between CalMac and Serco.
The government said the new deal includes £6million worth of investment in vessels and ports as well as a 10% increase on passenger and vehicle traffic over the course of the contract.
CalMac have almost 350 commitments to improve the service as part of the contract
The operator has committed to retaining the CalMac pension scheme and a policy of no compulsory redundancies.
The tender price for the next contract is around £900million for eight years from October 1 this year.
First Minister Nicola Sturgeon said: “I’m very pleased to announce CalMac Ferries Ltd as our preferred bidder for the next Clyde and Hebrides Ferry Services contract.
“CalMac have a long and proud tradition of running the Clyde and Hebrides routes, and the company is woven into the fabric of the communities they serve.
“Their tender offers a good deal for those communities served by these vital transport links and ensures that we can maximise the opportunities to support and nurture our island economies.
“CalMac will better manage demand to drive an increase in traffic, as well as make the ferry services more attractive with the introduction of smart ticketing on key routes.
“The Scottish Government has made a clear commitment to our ferry services, investing a record £1billion in port infrastructure, vessels and services since 2007.
“Scottish Ministers will retain control of all of important issues, such as fares and timetables, through the public service contract.
“Vessels and port infrastructure will also remain publicly owned as they are now.
“This new contract looks to make further improvements our ferry services, and I look forward to CalMac starting the new contract later this year.”
Martin Dorchester, managing director of CalMac said: “We are proud to be given the opportunity to transform ferry passengers’ experience across the west coast of Scotland and to work closely with our partners to connect towns, cities and communities like never before.
“Our successful bid demonstrates our ability to provide innovative service improvements and value for money for customers. Drawing on our experience in the UK ferry market where we have won a number of awards, our bid delivers industry-leading customer care and high standards of reliability.
“The detail of our bid is confidential until the formal procurement process is concluded, however among the things that people can look forward to seeing are more opportunities for local employment; a refreshed on-board retail offering; investment in on-board facilities; closer, more responsive working with communities and an innovative approach to vessel maintenance to minimise disruption to services especially during the winter refit period.
“Our commitment to safety, support for local economies and businesses and protecting the very special environment in which we operate will not change.”